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SSSSS [86.1K]
3 years ago
14

Guadalupe’s credit card has an APR of 23%, calculated on the previous monthly balance, and a minimum payment of 2%, starting the

month after the first purchase. Her credit card record for the last 7 months is shown in the table below. How are finance charges calculated?
Business
2 answers:
hoa [83]3 years ago
8 0

Answer:

Attached

Explanation:

This question doesn’t seem to be complete however I’ll try to answer it to the best of my knowledge.

APR refers to the Annual Percentage Rate. APR is applied on whatever money is borrowed from a Credit Card and then the monthly interest is calculated. Minimum Payment is the minimum amount that needs to be paid from the total amount outstanding in order to avoid penalty being charged on the sum borrowed.  

Let me show you an example to demonstrate the concept which will be applicable in almost every scenario:

Month  Sum Borrowed   Outstanding   Interest   Minimum Payment  

1  $3,000.00    

2  $4,500.00   $3,000.00   $57.50   $60.00  

3  $5,600.00   $4,500.00   $86.25   $90.00  

4  $8,000.00   $5,600.00   $107.33   $112.00  

5  $9,000.00   $8,000.00   $153.33   $160.00  

6  $1,000.00   $9,000.00   $172.50   $180.00  

7  $2,800.00   $1,000.00   $19.17   $20.00  

   

*Assume the Limit of Credit Card to be $ 10,000    

*Example of Interest Calculation in Month 2 - ($3000*0.23)/(12)    

*Example of Minimum Payment Calculation in Month 2 - ($3000*0.02)    

 

wlad13 [49]3 years ago
4 0
Interest*previous balance 
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Dmitry [639]

Answer:

Fair price of the insurance policy is $62,500.

Explanation:

We have given that an investment that will pay you and your heirs $5000

So the annual cash flow = $5,000

It is given that you can earn 8 % annually on your money

Required rate of return = 8%

We have to find the fair price for the investment

Price of this annuity =\frac{5000}{0.08}=$62500

Fair price for the investment is $62,500.

8 0
3 years ago
The ethical codes that tell employees what behavior is expected of them and establish the punishment for any violations are call
Vilka [71]
<h2>Compliance-based ethical codes that tell employee what behavior is expected of them and establish the punishment for any violations</h2>

Explanation:

Compliance-based ethical code

  • Follow laws
  • Follow rules and regulations
  • Avoid legal complaints
  • This always focus on prevention, early detection of violation
  • Will empower legal counsel
  • State of being in accordance with established guidelines
  • These are the rules attached to the employees
  • The rules, laws and regulation might be as follows

              1. Non-Disclosure agreement

              2. Behavior especially towards women employee

              3. Timings and other administrative procedures

              4. Any other which might create a legal issue

3 0
2 years ago
Winterbourne is considering a takeover of Monkton Inc. Winterbourne has 18 million shares outstanding, which sell for $56 each.
Whitepunk [10]

Answer:

Price of per share to be paid by Winterbourne to Monkton shareholders  =$ 33 M

Explanation:

Before merger the netwoth  = No.of shares * Price

= 13M * $ 28

= $ 364 M

Price of per share to be paid by Winterbourne to Monkton shareholders  = [ Net worth of Monkton before Merger + Merger Gain ] / No.of Shares

= [ $ 364 M + $ 65 M ] / 13 M

= $ 33 M /

4 0
2 years ago
You invest 70% of your money on a stock with expected return of 15% and standard deviation of 22%. The rest of your money is inv
Ahat [919]

Answer:

The portfolio return is 12.6% and the portfolio SD is 15.4%. Thus, option a is the correct answer.

Explanation:

The expected return of a portfolio is the weighted average of the individual stock returns that form up the portfolio. Thus, the expected return for a two stock portfolio is,

Return of Portfolio =  wA * rA  +  wB * rB

Where,

  • w represents the weight of each stock in the portfolio
  • r represents the return of each stock

Portfolio return = 0.7 * 0.15  +  0.3 * 0.07  =  0.126  or 12.6%

The standard deviation of a two stock portfolio containing one risky and one risk free asset is the weight of risky asset in the portfolio multiplied by the standard deviation of the risky asset. The risk free asset has zero standard deviation.

Standard deviation of such a portfolio is,

Portfolio SD = w of risky asset * SD of risky asset

Portfolio SD = 0.7 * 0.22  

Portfolio SD = 0.154 or 15.4%

4 0
3 years ago
Unis Technologies has introduced a new installation program that is the first of its kind and requires a great deal of complex t
Crazy boy [7]

Answer:

Focus heavily on personal selling.

Explanation:

Personal selling is a selling technique in which the salesperson meets the customer face to face, introduces the product, explains its use and characteristics extensively, and tries to close the sell by building rapport.

Because the product that Unis Technologies is promoting is complicated to use, and few people have the required knowledge, the company will have to focus on personal selling, otherwise, the potential customers will likely feel intimitaded and not buy the product.

7 0
3 years ago
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